Afghanistan reportedly closes down at least 16 crypto trading platforms

In the western province of Herat, Afghanistan, law enforcement officials reportedly shut down at least 16 crypto platforms. The operation takes place three months after the present Taliban administration outlawed trading in digital assets.

According to a recent local media report, Herat police officials shut down at least 16 crypto trading sites in the country’s second-most populous province. The government’s actions are a result of the central bank’s unfavorable view of the digital asset market. It recently claimed that crypto trading should be restricted because it “has caused lots of problems and is scamming people.”

Afghanistan lacks financial literacy

The Herat Money Exchangers’ Union agreed that the platforms should be shut down. According to the organization, criminals frequently defraud people through the trade of digital currencies by capitalizing on the fact that the majority of Afghanistan citizens lack enough financial literacy, making it simple to fall victim to a hoax.

It is important to note that the area’s economy was unclear last year as a result of Afghanistan’s political leadership transition. Surprisingly, the unpredictability led some people to exchange their fiat money for stablecoins and digital assets.

Recall that the Taliban (an ultraconservative political and religious group) retook control of Afghanistan in August of last year, making international headlines. The new administration instigated a civil war to retake control, which angered the Western World (dominated by the USA), which then put economic sanctions on the country.

Afghanistan, one of the poorest countries, thereby fell into an even worse predicament. Because of the panic that swept the nation, some of its citizens sought out alternate forms of payment in order to protect their riches. Curiously, a significant portion of them turned their attention to cryptocurrencies and stablecoins.

This was unexpected because the nation’s residents have traditionally relied mostly on cash, jewelry, and precious metals during difficult times.